Wynn Macau, Limited’s (HKG:1128) Share Price Matching Investor Opinion
Wynn Macau, Limited’s (HKG:1128) price-to-earnings (or “P/E”) ratio of 18.3x might make it look like a sell right now compared to the market in Hong Kong, where around half of the companies have P/E ratios below 12x and even P/E’s below 7x are quite common. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s as high as it is.
While the market has experienced earnings growth lately, Wynn Macau’s earnings have gone into reverse gear, which is not great. One possibility is that the P/E is high because investors think this poor earnings performance will turn the…
